Hindustan Zinc Ltd (HZL) witnessed a strong rally in its stock price during Monday’s trading session, gaining 4.7% to hit an intraday high of ₹549.80 on the NSE. The uptrend came amid broader buying interest in the metals space and improving sentiment around base metal prices globally.
Stock Performance and Technical Outlook
The stock opened at ₹525 and steadily moved upward through the session, ultimately closing near the day’s high. Analysts note that the immediate resistance lies at ₹556, a level where the stock previously faced selling pressure. A decisive breakout above this zone could trigger further upside toward the ₹580–₹590 range.
On the downside, strong support is expected around ₹520, followed by ₹500.
“Hindustan Zinc has broken out of a short-term consolidation pattern on strong volume. If it sustains above ₹550, it could trigger another leg of rally,” said a technical analyst at a leading brokerage.
Market Sentiment and Fundamentals
Investor optimism is supported by a stable outlook for zinc and lead prices, key metals for Hindustan Zinc. Additionally, the company’s strong dividend track record and robust operational performance continue to make it attractive to both retail and institutional investors.
In its most recent earnings report, Hindustan Zinc reported:
- Revenue: ₹8,500 crore (Q4 FY25)
- Net Profit: ₹2,480 crore
- EBITDA Margin: 45%
These figures reflected stable performance despite global headwinds in metal demand.
Dividend Attractiveness
Hindustan Zinc is known for its high dividend yield, which continues to attract long-term investors. In FY25 alone, the company declared a total dividend of ₹24 per share, translating into a yield of over 4.5% based on current market price.
Outlook
With commodity prices showing signs of recovery and operational efficiency improving, analysts remain cautiously optimistic. Brokerage houses are tracking the ₹556 resistance level closely as a potential trigger for fresh buying.
Key Highlights:
- Stock Surge: Up 4.7% intraday
- Day’s High: ₹549.80
- Immediate Resistance: ₹556
- Support Levels: ₹520 / ₹500
- Dividend Yield: ~4.5%
- FY25 Net Profit: ₹2,480 crore
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